This caution comes as the Economic and Financial Crimes Commission (EFCC) has reported a noticeable surge in fraudulent activities linked to both former and current employees of financial institutions and their trusted partners. Speaking at a capacity-building workshop in Lagos, NDIC's Managing Director and Chief Executive Officer, Bello Hassan, highlighted the critical need to address these insider threats, noting that they remain a major cause of bank failures.

The two-day workshop, themed "Inter-Agency in the Fight Against Financial Malpractices in Banks and Other Financial Institutions in Nigeria," gathered law enforcement agents from across the country. Represented by Nuhu Bashir, Director of Communication and Public Affairs, Hassan emphasized the NDIC's consistent efforts over the years to combat these issues. He remarked, "Authorities are becoming more proactive with policies and examinations/investigations to ensure that banks/financial institutions strengthen their risk management practices to prevent loss of funds and maintain depositors' confidence."

Bashir also noted NDIC's involvement since 2012 in organizing workshops to enhance the skills of law enforcement officers and regulatory agency staff involved in investigating and prosecuting bank directors, managers, and staff engaged in malpractices.

EFCC Chairman Ola Olukoyede disclosed that the commission recently arraigned an employee of a new-generation bank for abusing privileges and altering customer records, resulting in a significant financial loss to the bank. Represented by Michael Wetkas, Lagos Zonal Commander, Olukoyede highlighted the growing threat of collaborative insider fraud, pointing out that even Point of Sale (POS) operators have been implicated in these schemes, facilitating the removal of illicit funds from the financial system.

The concerted efforts of NDIC and EFCC underscore the critical need for robust measures to protect the integrity of Nigeria's banking sector against insider threats and financial malpractices.

Culled from Daily trust